Investors and Traders Flee Exchanges as Large Outflows of Bitcoin Continues
According to the most recent data from Glassnode, the blockchain data and intelligence provider that generates innovative on-chain metrics and tools for digital asset stakeholders, large amounts of Bitcoin have been on the move yet again making March the fourth month in a row with exchanges losing 100,000 BTC.
By Andrew Senior
April 4th, 2022
Since the conclusion of 2021, there has been a series of exchange outflows that has seen both active traders and investors moving funds away from exchanges as the general trust levied upon centralized exchanges has dropped significantly.
During January of 2022, Bitcoin lost almost 40% of its value after it broke through to a new all-time high. At the same time, Bitcoin whales started accumulating new coins on centralized exchanges and moving them to noncustodial wallets.
The market also switched to accumulation mode at the very same time that supply was being removed from trading platforms which makes it very possible that Bitcoin will become a victim of a supply shock at some point in 2022 if strong demand from retail or institutional traders revs back up.
The current exodus from large exchange outflows is largely tied to the series of limitations and bans of accounts on large exchanges like Kraken and Binance. The CEO of Kraken recently urged users to move their holdings away from exchange-controlled wallets in order to avoid any potential restrictions on trading or withdrawals. As the various exchanges are largely limited by the respective countries they are based in.
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